Business, 11.03.2020 04:26, kaydrama2003

Portfolio expected rate of return: Barry Swifter is 60 years of age and considering retirement. Barry's retirement portfolio currently is valued at $750,000 and is allocated in Treasury bills, as S&P index fund, and an emerging market fund as follow:

Expected Return $ Value
Treasury bills 4.4% 76,000
S&P 500 Index Fund 6.7% 430,000
Emerging Market Fund 11.3% 244,000
a. Based on the current portfolio composition and the expected rates of return given above, what is the expected rate of return for Barrys portfolio?

b Barry is considering a reallocation of his investments to include more treasury bills and less exposure to emerging markets. If Barry moves all of his money from the emerging market fund and puts it is treasury bills, what will be the expected rate of return on the resulting portfolio?

a. Based on the current portfolio composition and the given expected rates of return, the expected rate of return for Barrys portfolio is round to two decimal places.

b if Barry moves all his money out of emerging market funds and puts it in treasury bills, the expected rate of return for his portfolio is round to two decimal places.

Answers: 1

Show answers

Other questions on the subject: Business

Business, 21.06.2019 22:00, tylerineedhelp

The market yield on spice grills' bonds is 15%, and the firm's marginal tax rate is 33%. what is their shareholders' required return if the equity risk premium is 4%?

Answers: 1

continue

Business, 22.06.2019 10:00, Randomkid0973

University car wash built a deluxe car wash across the street from campus. the new machines cost $219,000 including installation. the company estimates that the equipment will have a residual value of $19,500. university car wash also estimates it will use the machine for six years or about 12,500 total hours. actual use per year was as follows: year hours used 1 3,100 2 1,100 3 1,200 4 2,800 5 2,600 6 1,200 prepare a depreciation schedule for six years using the following methods: 1. straight-line. 2. double-declining-balance. 3. activity-based.

Answers: 1

continue

Business, 22.06.2019 13:00, eggoysters

Dakota products has a production budget as follows: may, 16,000 units; june, 19,000 units; and july, 24,000 units. each unit requires 3 pounds of raw material and 2 direct labor hours. dakota desires to keep an inventory of 10% of the next month’s requirements on hand. on may, 1 there were 4,800 pounds of raw material in inventory. direct labor hours required in may would be:

Answers: 1

continue

Business, 22.06.2019 19:10, sierravick123owr441

You have just been hired as a brand manager at kelsey-white, an american multinational consumer goods company. recently the firm invested in the development of k-w vision, a series of systems and processes that allow the use of up-to-date data and advanced analytics to drive informed decision making about k-w brands. it is 2018. the system is populated with 3 years of historical data. as brand manager for k-w’s blue laundry detergent, you are tasked to lead the brand's turnaround. use the vision platform to to develop your strategy and grow blue’s market share over the next 4 years.

Answers: 2

continue

Do you know the correct answer?

Portfolio expected rate of return: Barry Swifter is 60 years of age and considering retirement. Barr...